WFYI logo

Understanding HSN Codes and GST Rates for Hard Disk Drives

This article explores the application of GST and Harmonised System of Nomenclature (HSN) codes for Hard Disk Drives (HDDs) and Solid State Drives (SSDs) in India. It details how GST replaced earlier taxes like VAT and customs duties, simplifying the tax structure for these essential computer components. The guide also breaks down the HSN code for hard drives and lists the current GST rates for various related computer parts, providing clarity for businesses and consumers alike.

📖 3 min read read🏷️ HSN Code and GST Rate

Hard Disk Drives (HDDs) and Solid State Drives (SSDs) are vital components for data storage across various devices, from surveillance systems and digital displays to personal computers. This guide provides an overview of the Harmonised System of Nomenclature (HSN) codes and Goods and Services Tax (GST) rates applicable to hard disks, assisting businesses in making informed procurement choices.

GST Application for Hard Disk Drives

Before the Goods and Services Tax (GST) system was implemented in 2017, computer hardware components like hard disk drives and solid-state drives were subject to Value Added Tax (VAT) and various customs duties, primarily due to their imported nature. For instance, in 2016, internal HDDs faced approximately 6.3% customs duty, while external HDDs incurred about 14.7%. GST has since simplified this complex taxation structure by consolidating these diverse taxes into a unified rate.

  • Consumers acquiring HDDs and SSDs from dealers or traders within India are liable for 9% State GST (SGST) and 9% Central GST (CGST).
  • For both internal and external hard disk drives, including solid-state drives (SSDs) that are imported, Integrated GST (IGST) is applied at a rate of 18%.

HSN Code Breakdown and GST Rate for Hard Drives

The Harmonised System of Nomenclature (HSN) provides an internationally recognized system for classifying goods and services, facilitating standardized identification and tariff application in global commerce.

For instance, the HSN code for Hard Disk Drives (HDDs) is 84717020. This code is structured as follows:

  • 84: Represents the chapter covering nuclear reactors, boilers, various machinery, mechanical appliances, and their respective parts.
  • 8471: Denotes the heading for automatic data processing machines, magnetic or optical readers, and equipment for transcribing, processing, and storing coded data on media.
  • 847170: Specifies the subheading for 'computer storage units'.
  • 84717020: Identifies the specific tariff item code for 'storage units: hard disk drives'.

GST Rates for Hard Disk Drives and Related Computer Parts

HSN CodeHSN DescriptionGST Rate
84717020Hard disk (e.g., 4TB, external)18%
84713010Personal computer18%
8528Monitor18%
847160Printer18%
85235100Non-volatile SSD18%

For additional details, you can explore information on GST for Laptops: Applicability, HSN Code, and GST Rate.

Further Reading

Frequently Asked Questions

What is the primary objective of the HSN code in the GST framework?
The HSN code's main purpose is to standardize the classification of goods and services globally, ensuring uniform tax application and ease of trade documentation under GST.
How does GST influence the consumer price of electronic items?
GST streamlines previous indirect taxes into a single levy, which typically results in a more transparent tax structure. While specific impacts vary, it aims to reduce the cascading effect of taxes, potentially leading to more stable or lower prices for electronic goods for the end consumer.
Are all electronic components subject to an identical GST rate?
No, GST rates for electronic components can vary. While many components like hard disks, monitors, and personal computers currently fall under the 18% slab, specific components may have different classifications and thus different rates, depending on their HSN code.
Could you explain the distinctions between CGST, SGST, and IGST for inter-state transactions?
CGST (Central GST) and SGST (State GST) are levied on intra-state (within the same state) supplies, with revenue split between the central and state governments. IGST (Integrated GST) is applied to inter-state (between different states) supplies and imports, collected by the central government, which then apportions the state's share to the destination state.
What is the process for businesses to verify the correct HSN code for a product?
Businesses can verify HSN codes through official GST portal resources, HSN code directories provided by tax authorities, or by consulting with tax professionals. Accurate classification is crucial for correct GST calculation and compliance.

Share Article

Browse by Topics

Related Articles

Popular Articles